(a) Businesses qualified for benefits from this incentive may choose from two (2) options:

1. (1)

   1. (A) Option one.

(i) Obtain a refund of the gross receipts tax paid on the purchase of construction materials and furnishings used in the initial construction and equipping of the childcare facility; and

1. (ii)

(b) (b) This credit can be received each year as long as the childcare program is certified by the Division of Child Care and Early Childhood Education. Example: $50,000 (total annual salaries of childcare workers) x 3.9% = $1,950 income tax credit.

1. (B) If two (2) or more businesses participate in a childcare program for their employees, then each business will be allowed an income tax credit of three and nine-tenths percent (3.9%) of the annual salary of only those employees who are on the respective businesses’ payroll and are employed exclusively for childcare services.

   1. (C) This option is not available to businesses that have contracted for the operations of the childcare facility; or

2. (2)

   1. (A) Option two.

   2. (B)

      1. (i) Obtain a refund of the gross receipts tax paid on the purchase of construction materials and furnishings used in the initial construction and equipping of the childcare facility; and
      2. (ii) Receive a five thousand dollar ($5,000) income tax credit for the first-year the business provides its employees with a childcare facility.
   3. (C) If two (2) or more businesses participate in a childcare program for their employees, then the first year five thousand dollar ($5,000) credit will be prorated among the businesses based upon the percentage of the cost paid by each business for the initial construction and equipping of the childcare facility.

   4. (D)

      1. (i) The income tax credit shall first be available in the taxable year following the year the business makes payment of wages to childcare workers.
      2. (ii) To the extent that the credit is not fully utilized in this first year, it may be carried forward for an additional two (2) years.